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How To Get Help With Gas And Electricity Bills
On Sunday, August 14, 2022 -
If you’re finding it difficult to cope with your gas and electric bills, you might feel like you’re on your own - but you can get help to keep your heating, lights, and everything else you need up and running.
Various schemes are run by the government and some energy suppliers to help people pay their gas and electric bills. You could be entitled to a one-off payment, or your supplier may be able to help you out.
What happens if I stop paying my energy bills?
Some groups, like the Don't Pay campaign in the UK, are advising people to stop paying their bills in protest against unaffordable prices. However, it's not a good idea to do this, and particularly without speaking to your energy supplier first. Failing to make your energy bill payments could result in your supplier marking these payments as "missed" in your credit report. This will then reduce your credit score, and make it more difficult for you to get approved for credit in the future. In the worst case scenario, your energy supplier could obtain a warrant to enter your home and install a pre-payment meter, and they may also pursue legal action to file a CCJ against you for the money you owe.
If you’re having problems affording your gas and electricity then you should speak to someone about it before you stop paying. Your energy supplier or a debt adviser will be able to tell you what help you could be entitled to. This could include the supplier putting you onto a payment plan, or one-off payments from the government to help with gas and electric bills during the winter or even assistance with making your home more energy-efficient. These options - particularly payment plans - may also affect your credit score, but the impact will be much less than if you simply stopped paying your bills.
Are there any grants to help reduce energy bills?
You may be eligible for a grant to improve the energy efficiency of your home. This could give you financial help to install loft insulation which will reduce your energy bills. But there are other ways you could receive help with your energy bills.
Can Universal Credit help with electricity?
You can’t receive extra Universal Credit to help with your energy bills but you can arrange for some of your bills to be paid directly from your benefits. This scheme is known as Fuel Direct, or third party deductions and could be useful if you’re having financial difficulties and want to ensure that important bills get paid. They’ll deduct 5% from your Universal Credit to go towards paying energy bills. This also works for other bills like rent, water bills and even fines.
Winter Fuel Payment
The Winter Fuel Payment is a one-off payment (between £100 and £300) to help you pay your heating bills over the winter. With prices expected to keep rising through the winter, it's a useful one to know about and check your entitlement to now. You’re eligible to receive it if you were born on or before 25th September 1956 and you've lived in the UK for a certain amount of time.
You’ll receive the Winter Fuel Payment automatically if you get the State Pension or another social security benefit. If you don’t receive it automatically, you can make a claim here. You could also receive it if you live abroad, but conditions apply.
Cold Weather Payment
The Cold Weather Payment scheme helps people with their heating bills, if the temperature drops, or is forecast to drop below zero degrees for seven days or more. This year’s scheme starts on 1st November 2021, and you’ll receive £25 for each seven-day period. You could be eligible for the scheme if you receive any of the following:
- Pension Credit
- Income Support
- Jobseekers Allowance, Employment & Support Allowance
- Universal Credit
- Support for mortgage interest.
Warm Home Discount Scheme
This scheme, which starts in October each year, is a £140 discount that’s applied to your electricity or gas bill. It covers you through the winter period from October to March. You could be eligible for the discount if you receive the Guarantee Credit element of Pension Credit, or you meet your energy supplier’s criteria for the scheme.
Not all suppliers are part of this scheme but some of the big names have signed up to it including British Gas, EDF, and Octopus.
Is there help with gas and electric arrears?
Yes, some energy suppliers have charitable trusts which can help you out if you’re having difficulty with your energy bill. The British Gas Energy Trust will help anyone, you don’t need to be a British Gas customer. The following companies will help their own customers:
Ovo debt and energy assistance
You will have to provide detailed financial information and be able to show that you’ve already sought debt advice.
